Debt

9 Months Ended

Jul. 31, 2012

Debt [Abstract]

Debt

12. Debt

A summary of lines of credit and long-term debt is as follows:

In thousands	July 31, 2012		October 31, 2011
Asia/Pacific short-term lines of credit	$	15,032	$	18,335
Americas Credit Facility		61,700		21,042
Americas long-term debt		15,500		18,500
European credit facility		34,714		2,306
Senior Notes		400,000		400,000
European Senior Notes		245,489		282,925
Capital lease obligations and other borrowings		11,009		4,578
	$	783,444	$	747,686

As of July 31, 2012, the Company’s credit facilities allowed for total maximum cash borrowings and letters of credit of $371.9 million. The Company’s total maximum borrowings and actual availability fluctuate depending on the extent of assets comprising the Company’s borrowing base under certain credit facilities. The Company had $111.4 million of borrowings drawn on these credit facilities as of July 31, 2012, and letters of credit issued at that time totaled $51.9 million. The amount of availability for borrowings under these facilities as of July 31, 2012 was $117.4 million, $57.6 million of which could also be used for letters of credit in the United States. In addition to the $117.4 million of availability for borrowings, the Company also had $91.1 million in additional capacity for letters of credit in Europe and Asia/Pacific as of July 31, 2012. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is currently in compliance with such covenants.

In December 2010, Boardriders SA, a wholly owned subsidiary of the Company, issued €200 million (approximately $265 million at the date of issuance) in senior notes (“European Senior Notes”), which bear a coupon interest rate of 8.875% and are due December 15, 2017. The Company used the proceeds from the European Senior Notes to repay its then existing European term loans and to pay related fees and expenses. As a result, the Company recognized non-cash, non-operating charges during the nine months ended July 31, 2011 of approximately $13.7 million, included in interest expense, to write-off the deferred debt issuance costs related to such term loans.

The estimated fair values of the Company’s lines of credit and long-term debt are as follows:

In thousands	July 31, 2012
	Carrying Amount		Fair Value
Lines of credit	$	15,032	$	15,032
Long-term debt		768,412		749,508
	$	783,444	$	764,540

The fair value of the Company’s long-term debt is calculated based on the market price of the Company’s publicly traded Senior Notes, the trading price of the Company’s European Senior Notes and the carrying values of the majority of the Company’s other debt obligations. For the Company’s Senior Notes and European Senior Notes, the fair value is classified as a Level 1 measurement as the values are based on quoted market prices in active exchange markets.

The carrying value of the Company’s trade accounts receivable and accounts payable approximates fair value due to their short-term nature.

The Company’s non-financial instruments, which primarily consist of goodwill, other intangible assets and property and equipment, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis, or whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable, non-financial instruments are assessed for impairment and, if applicable, written-down to and recorded at fair value, considering both Level 2 and Level 3 valuation inputs.